John White on MMS (Part II)

Welcome to the second part of the mobile messaging coverage. Today, John White of Portio Research Ltd will be visiting here and covering the MMS. If you missed the previous part you can follow the link.

Well John, the stage is all yours! :)

What is the value of MMS?
MMS generated approximately $15 Bn USD in full-year 2006, and our new “Mobile Messaging Futures 2007-2012” forecasts this rising to almost $34 Bn USD by the end of 2012.
Market size estimates Worldwide, MMS traffic volumes in 2006 reached a little over 27 Bn messages, which demonstrates remarkable growth of over 90% form the year before…when we recorded total SMS traffic at 14 bn messages worldwide for the full-year 2005.

How big is the market for MMS?
We forecast this market to continue growing healthily for several years to come, contrary to some reports than “MMS is all-but-dead”, we disagree and we see MS traffic volumes growing to reach over 131 Bn messages worldwide by the end of 2012.

When will MMS penetrate the mass consumer market?
We believe that the entire mobile industry has misunderstood MMS from the start, including most of the operators who have been working hard to drive higher adoption. MMS was sold from the start as this great successor to SMS, but that shows a complete misunderstanding of what MMS ad what has made SMS such a popular service. As explained previously, SMS owes its success to it’s utility and simplicity, it is useful, cheap, easy, quick and almost effortless. MMS is entirely different, it offers little additional utility over SMS, costs several times as much and is more time consuming and complicated to use. If anything, that makes MMS LESS useful than SMS, as a service, so why would consumers want to pay MORE to use it? We believe MMS should be seen in its own right as an entertainment service and as a premium content delivery mechanism, not as a messaging tool. SMS is all the messaging many people need, and what MMS offers is something else, something fun, the chance to send pictures to your friends…this is nice, but it is rarely an essential activity, the way many SMS messages are. As long as everyone keeps expecting MMS to follow the success of SMS, they will continue to be disappointed, but once the mobile community stops linking the two together and looks as MMS as a separate service, we can that it is a highly successful application.   

What should operators do to overcome barriers to users’ adoption?
Reduce prices, drastically. SMS is priced, in “most” markets at a price level that most people don’t have to think about. Most people just keep sending SMS messages without thinking about the cost. Once MMS can be priced at a level that people can exchange several picture messages per day without giving the cost a thought, then traffic will grow, rapidly.

Thank you John for this interview. Don't forget to tune in next Sunday for some more talkin' about mobile messaging  :)